DTN Early Word Opening Livestock 03/07 05:58

DTN Early Word Opening Livestock 03/07 05:58 Cattle Futures Set to Open With Moderate Strength Live and feeder contracts should open moderately higher, supported by follow-through buying and cash premiums. On the other hand, lean hog futures seem likely to open on a mixed basis thanks to light bull spreading and profit-taking. By John Harrington DTN Livestock Analyst Cattle: Steady-$2 HR Futures: 10-30 HR Live Equiv $147.60 + $0.60* Hogs: Steady-$1 LR Futures: Mixed Lean Equiv $ 79.61 - $0.17** * based on formula estimating live cattle equivalent of gross packer revenue ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Last week's cash cattle market turned out to be an extremely narrow window. A light round of dressed business surfaced late Friday afternoon at $214, steady to $2 higher basis Nebraska and Iowa weighted averages. Yet scattered sales in the South at $136 ($1 lower) had to wait until after dark on Friday and Saturday morning. It will be interesting to see negotiated trade officially recognized by Livestock Mandatory Price Reporting around midday. Assuming small numbers at this point, it seems reasonable to speculate that packers are starting the week very close to the knife. Additionally, it's a good bet that new showlists distributed through the day will be at least some larger, inflated by unsold steers and heifers carried over. Our guess is that initial asking prices will be around $138 in the South and $218 plus in the North. The live and cattle futures are expected to open moderately higher, boosted by follow-through buying and seasonally positive fundamentals.